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World Trade Indicators 2009/10
Cameroon Trade Brief
Trade Policy cases, removed import taxes on equipment required
for oil exploration.
Cameroon’s trade policy is primarily based on the
Common External Tariff (CET) of the Economic and
Monetary Community of Central Africa (CEMAC), External Environment
which the country adopted in 1993. The CEMAC As judged by the country’s Market Access TTRI2
CET rates are generally higher than those of other (including preferences) of 2.0 percent, the trade
countries in the Sub-Saharan Africa (SSA) region as barriers it faces are similar to that of an average lower-
reflected in Cameroon’s MFN Tariff Trade middle-income country (2.3 percent) but it faces a
Restrictiveness Index (TTRI)1 of 14.7 percent, which relatively more favorable trading environment than an
is higher than both the SSA and lower-middle-income average SSA country (3.9 percent). The weighted
country averages (11.6 percent and 8.6 percent, overall rest of the world tariff (including preferences)
respectively). One of the few African countries faced by the country is 1.7 percent, driven in large part
approaching food security, Cameroon provides higher by the low tariff of 0.9 percent on its non-agricultural
tariff protection to its agricultural sector at 17.1 exports, primarily oil. Its agricultural exports face a
percent versus 14.2 percent for its non-agricultural much higher tariff of 5.7 percent. The country’s
sector. Based on the TTRI, it ranks 117th out of 125 currency, the CFA franc, which is pegged to the euro,
countries (where 1st is least restrictive). The country’s appreciated by 3.8 percent in 2008 in real, trade-
average MFN applied tariff has remained relatively weighted terms, reducing the competitiveness of the
stable over time and is currently 17.8 percent. In line country’s exports.
with the CEMAC’s policy, the maximum MFN tariff
imposed on imports (excluding alcohol and tobacco) is As negotiations between the Central Africa group, to
30 percent. The country’s trade policy space, as which Cameroon belongs, and the EU towards a full
measured by the wedge between bound and applied Economic Partnership Agreement (EPA) could not be
tariffs (the overhang), is 57.9 percent. Regarding its completed prior to the December 2007 deadline,
commitment to liberalizing services trade, Cameroon Cameroon signed a bilateral “interim� agreement with
ranks 135th (out of 148) on the GATS Commitments the EU in January 2009. The “interim� EPA gives
Index. Cameroon duty-free and quota-free access to the EU
market in exchange for an asymmetric and gradual
To address the food and fuel crises in 2008, the opening of its own economy to EU imports. The
government reduced import taxes on commodities country continues to negotiate a comprehensive
such as rice and wheat flour and suspended customs regional EPA with the EU as part of the Central
duties on fuel. The government also banned the re- Africa group.
exportation of subsidized commodities. To boost
economic growth amid the financial crisis, the country,
which is an oil exporter, has reduced and, in some Behind the Border Constraints
Cameroon remained in the bottom 10 percent of
international business environments in 2009, being
Unless otherwise indicated, all data are as of August 2009 ranked 171st out of 183 countries in the Ease of Doing
and are drawn from the World Trade Indicators 2009/10 Business index. It fared better on the Logistics
Database. The database, Country Trade Briefs and Performance Index (LPI), which reflects the extent of
Trade-at-a-Glance Tables, are available at trade facilitation, scoring 2.49, on a scale of 1 to 5,
http://www.worldbank.org/wti. compared to the SSA and lower-middle-income
averages of 2.35 percent and 2.47 percent, respectively.
If using information from this brief, please provide the It ranked 84th (out of 150) in the world and 9th (out of
following source citation: World Bank. 2010. “Cameroon 39) in the SSA region (with South Africa leading the
Trade Brief.� World Trade Indicators 2009/10: Country Trade regional group). Among the LPI subcategories, it
Briefs. Washington, DC: World Bank. Available at performed best in ensuring the timeliness of
http://www.worldbank.org/wti.
World Trade Indicators 2009/10 Cameroon Trade Brief
shipments in reaching their destinations while its disbursement under the exogenous shock facility
weakest performance was in the quality of transport (ESF) that will help support the balance of payments.
and IT infrastructure for logistics.
Notes
Trade Outcomes 1. TTRI calculates the equivalent uniform tariff that
After falling 3 percent in 2007, real trade (in constant would keep domestic welfare constant. It is weighted by
2000 U.S. dollars) increased by 34.1 percent in 2008, import shares and import demand elasticity.
although it is projected to decline again by 0.2 percent 2. MA TTRI calculates the equivalent uniform tariff of
in 2009. Exports experienced a turnaround, going trading partners that would keep their level of imports
from a contraction of 12.1 percent in 2007 to growth constant. It is weighted by import values and import
of 24.6 percent in 2008. Import growth also demand elasticities of trading partners.
accelerated sharply from 6.2 percent in 2007 to 42.1
percent in 2008. Both exports and imports are,
however, expected to have dismal performance in References
2009, with exports projected to fall by 2 percent and African Economic Outlook. 2009. Cameroon. African
imports projected to grow by only 1.2 percent in 2009. Economic Outlook. May 27, 2009. OECD, Paris.
In nominal terms, World Bank estimates suggest that .
rate of 14.3 percent in 2007. Export growth, in Europa. 2009. “EU and Cameroon Sign Trade
particular, experienced a sharp acceleration from 9.5 Agreement.� Europa. January 15, 2009. .
2007. Boosted in part by increased production of Food and Agriculture Organization of the United
cocoa, the country’s main agricultural export, as Nations (FAO). 2008. “Policy Measures Taken by
planters responded to higher prices, goods exports Governments to Reduce the Impact of Soaring
registered an estimated growth rate of 26.1 percent in Prices: Africa—Cameroon.� FAO. December 15, 2008.
2008, up from 12.9 percent in 2007. Services exports
also recovered in 2008, growing at an estimated 14.4 International Monetary Fund (IMF). 2009. International
percent after a 9.7 percent decline in 2007. The robust Financial Statistics. IMF, Washington, DC. July
performance of exports may, however, not be 2009. < http://www.imfstatistics.org/>.
sustained in 2009, as goods exports are projected to United Nations (UN). 2009. The Global Financial Crisis:
drop significantly by 30.1 percent, owing in part to an Impact, Responses and Way Forward. UN, New York,
expected fall in oil prices, while services exports are NY. May 13, 2009. .
FDI inflows in 2007 were 2.1 percent of GDP, with World Trade Organization (WTO). 2007. “Trade Policy
most of it going to the oil and mining industries. To Review—Cameroon.� WTO, Geneva. December 5,
mitigate the deteriorating external outlook, the 2007. .